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Behind Bank of America's Big Gamble

By

Valerie Bauerlein and

James R. Hagerty

Updated Jan. 12, 2008 11:59 p.m. ET

The endgame in Bank of America Corp.'s $4 billion takeover of Countrywide Financial Corp. began with a December phone call from Countrywide Chief Executive Angelo Mozilo to his Bank of America counterpart, Kenneth D. Lewis.

After more than six months of financial deterioration at Countrywide -- despite a $2 billion infusion of cash from Bank of America in August -- Mr. Mozilo said he was ready to throw in the towel, according to Mr....

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